Database Reference
In-Depth Information
Developing and Communicating
Corporate Strategy with Balanced
Scorecard
The first thing that we do for the management team is we help them bring their
vision for the company to a set of measurable goals that they can justify to their
investors. We use Oracle's balanced scorecard tools to do this. We develop the
scorecard at the corporate level, and break it down for some senior executives to
align objectives at divisional level. We then move the objectives into the executive's
goals in the performance management applications that are part of
Human Capital
Management
(
HCM
). Here we will show the reports and metrics that are delivered
by Oracle Applications that allow these goals to be monitored and thereby the
executive's performance measured.
Balanced Scorecard Theory
The rise of
Balanced Scorecard
was a reaction to the narrow definitions of
performance that purely financial measures cause, measuring performance in terms
of historical results, not keeping an eye on the needs of the customer, not planning
for the future either in terms of people and processes. Balanced scorecard gathers
together metrics from a broader base and groups them into perspectives that show
the different dimensions of performance and stewardship. The balanced scorecard
theory was popularized by the writings of
Kaplan
and
Norton
in their 1993 topic
The
Balanced Scorecard
.
The four perspectives
The touchstone of balanced scorecard is metrics gathered under four perspectives. The
four perspectives are customer, financial, processes and learning and growth. The four
perspectives are interrelated. In order to meet financial objectives you need to focus
on customer needs. In order to improve financial results you need to find better, less
costly, more efficient ways to work, and if you are going to have results, not just now
but into the future, you need to make some investment in learning and growth.
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